There could soon be just two heavyweights left to slug it out in India’s web-based grocery market: Bigbasket and Amazon. Recently, Mint reported that web-based grocer, Bigbasket, was in acquisition talks with its smaller rival Grofers. This isn’t the first time such reports have emerged. The Economic Times reported so in January.
Bigbasket’s fight with Grofers could end soon but there’s another one brewing
Inventory or marketplace, that’s the question. And while the two models began in the US, the ultimate solution may be found in India
Grofers lost the battle of the market share and the battle of the business model. Now it may even lose the war of its own existence
Bigbasket, just to break even on each order, will have to hit an average basket margin of 20%
Grofers, in its previous model, needed to have a margin of over 21% on each order to just break even
Amazon, which runs a similar model to Instacart, currently focuses purely on creating habit